More than 100,000 Danes are now working beyond state pension age for the first time, the Danish Agency for Labour Market and Recruitment (STAR) has revealed, a growing trend supported by greater flexibility and financial incentives.

New figures from STAR showed that 100,498 people aged 65 and over were in employment in October, marking a 6 per cent year-on-year increase and a 27 per cent rise compared with 2022.

Industry commentators have described the milestone as both remarkable and indicative of a longer-term shift in the labour market.

PFA welfare and senior manager, Jesper Brask Fischer, said the data reflected a “senior revolution” that has unfolded over the past decade.

He added that it was “fantastic news” that so many older workers both want and can remain economically active, benefiting individuals, employers and society more broadly.

This trend is expected to continue, as a population survey conducted by Wilke for PFA found that 57 per cent of respondents expect to continue working after reaching retirement age, compared with 32 per cent who do not, while 11 per cent remain undecided.

Notably, men were significantly more likely than women to expect to stay in work, with 65 per cent of men planning to do so compared with 47 per cent of women.

Brask Fischer noted that work plays an increasingly vital role in the quality of life for older people, providing purpose, social interaction and a sense of contribution.

He added that PFA was also seeing growing interest from employers in more flexible working arrangements, including partial retirement, as they seek to retain experienced staff in a labour market where skills shortages persist.

Indeed, flexibility emerged as the key driver for extended working lives.

According to the PFA survey, 58 per cent of respondents cited flexible hours and shorter working weeks as the main incentive to continue working, ahead of higher pension payouts later (39 per cent), reduced job demands (36 per cent) and higher pay (32 per cent).

However, most respondents said they did not expect to work full-time, with many anticipating a gradual step-down in hours as they approach retirement.

Sampension has also highlighted the significance of the milestone, pointing to both social and financial factors behind the growing numbers.

Sampension head of advisory, Helle Dalsgaard, said the fact that more than 100,000 people are now working beyond pension age was “an impressive milestone” and a clear sign that the development is gaining momentum.

Echoing Fischer, she argued that many older workers want to remain part of a professional community and continue contributing their experience, while improved financial incentives have made postponing retirement more attractive.

These include removing offsets against the state pension for those working as pensioners, alongside the introduction and expansion of the tax-free senior premium.

Indeed, recent parliamentary approval to increase the senior premium, effective from the start of next year, is expected to further strengthen the incentive to remain in work.

The first-year premium will rise to DKK 53,901 in 2026 and to DKK 63,080 in 2029, while the second-year premium will increase to DKK 32,074 in 2026 and DKK 37,420 in 2029, based on 2025 price levels.

The premium is available to individuals who work at least 1,560 hours per year in the first and second year after reaching state pension age.

Supporting this outlook, a separate survey conducted by Epinion for Sampension found that 64 per cent of Danes could imagine working beyond state pension age either full-time or part-time, rising to 68 per cent among those aged 56 to 65.

Looking ahead, Dalsgaard suggested there was little sign the trend would slow, predicting continued growth in the number of pension-age workers as financial rewards and flexible working options expand further.

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